Contour, the leading digital trade finance network, announced today that Pan-African bank, Absa Corporate and Investment Bank are intent on joining the network and are in the process of finalising negotiations.
Absa CIB clients will be able to adopt a fully digital end-to-end Letter of Credit (LC) settlement process. Presenting digital LC documents can be done from an average of five to 10 days to under 24 hours. Currently, many of the continent’s trade transactions are manual and paper-based, which slows down trade growth by creating another layer of complexity and costs.
Once the parties formalise their negotiations, Absa CIB clients will be able to adopt a fully digital end-to-end Letter of Credit (LC) settlement process. Presenting digital LC documents can be done from an average of five to 10 days to under 24 hours. Currently, many of the continent’s trade transactions are manual and paper-based, which slows down trade growth by creating another layer of complexity and costs.
With a presence in 15 countries from Botswana to Zambia, the Pan-African diversified financial services group is banking on innovation to drive sustainable growth. Digital developments can reduce barriers to accessing trade finance and collectively, fintechs and financial institutions can work together to help trade and trade finance grow in a sustainable manner.
The African Continental Free Trade Area (AfCFTA) is a flagship project that aims to boost intra-Africa trade by 52.3 percent and expand the size of the continent’s economy to US$29 trillion by 2050. Absa is prioritising innovation by adopting digital solutions, to enable a greater flow of trade.
Carl Wegner, CEO at Contour said: “Africa is an emerging and exciting opportunity for trade finance digitisation, especially with the promise of AfCFTA in creating the first continent-wide free trade area. This will be crucial in unlocking more potential for trade growth across Africa and to its key trading partners. Absa is placing itself at the forefront of promoting sustainable growth and development for its clients.”
Michelle Knowles, Head of Trade and Working Capital at Absa CIB said: “Digitisation is essential to the democratisation of Trade Finance in Africa, assisting SMEs to gain access to the much-needed financing to stimulate trade. Absa has been investing in digital capabilities over the past five years, our future access to Contour’s platform is a step forward in further developing our digital roadmap and supporting our clients in their growth ambitions across the continent.”
